Investing.com – The euro zone's services sector unexpectedly expanded more than initially projected in December, data showed on Wednesday.
In a report, the market research group, Markit said the final euro zone services business activity index rose to 54.2 in December, following a preliminary estimate of 53.7.
Analysts had expected the index to remain unchanged at 53.7 in December.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
According to the data, national disparities widened at the end of 2010, as strong growth in Germany and France contrasted with weakness in Spain and Ireland.
Commenting on the report, Chris Williamson, Chief Economist at Markit said, “An increase in new business growth in December, alongside an uplift in confidence about the year ahead, suggests that this pace can be at least maintained in coming months.”
He added, “Growth has become increasingly lop-sided, however, with the periphery seeing a worrying deterioration in growth prospects.”
Following the release of the data, the euro was down against the U.S. dollar, with EUR/USD shedding 0.34% to hit 1.3262.
Meanwhile, European stock markets were broadly lower. The EURO STOXX 50 tumbled 1.15%, France’s CAC 40 plunged 1.01%, the FTSE 100 fell 0.46%, while Germany's DAX was down 1.20%.
In a report, the market research group, Markit said the final euro zone services business activity index rose to 54.2 in December, following a preliminary estimate of 53.7.
Analysts had expected the index to remain unchanged at 53.7 in December.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
According to the data, national disparities widened at the end of 2010, as strong growth in Germany and France contrasted with weakness in Spain and Ireland.
Commenting on the report, Chris Williamson, Chief Economist at Markit said, “An increase in new business growth in December, alongside an uplift in confidence about the year ahead, suggests that this pace can be at least maintained in coming months.”
He added, “Growth has become increasingly lop-sided, however, with the periphery seeing a worrying deterioration in growth prospects.”
Following the release of the data, the euro was down against the U.S. dollar, with EUR/USD shedding 0.34% to hit 1.3262.
Meanwhile, European stock markets were broadly lower. The EURO STOXX 50 tumbled 1.15%, France’s CAC 40 plunged 1.01%, the FTSE 100 fell 0.46%, while Germany's DAX was down 1.20%.